How to get the best equipment rental rate
That is usually the first question asked when financing something; be it your home, car, furniture or equipment and machinery for your company. How much is it going to cost me in interest on my hard-earned dollars to get what I want or need?
Let’s focus on equipment financing. Brokers and lenders often advertise payments or rate sheets, which are extremely low, lower than the rate at which primary lenders even lend money. Why do they do that? Because by the time you provide a complete financial package, you’ve done a considerable amount of work, it’s taken time, and your credit has been affected at least once. Now the lender notifies him that he doesn’t qualify for the “preferred” quoted rate, but can still approve him at a higher rate, of course. Right now, many business people just agree instead of going through the whole process again and can’t really make up their minds. If you’ve been shopping for a car, then you know the drill.
How to avoid this predicament? Have your finances organized, scanned, and in PDF format so you don’t feel overwhelmed when asked to provide them; The more information the better. If you plan to use real estate or other equipment as collateral, have the appraised value and old bills related to those assets on hand. Most importantly, print out your personal or business credit score (FICO and D&B score) and offer that report as a basis for preliminary approval, that way you’ll prevent everyone from pulling your credit, which quickly raises a flag. red. Once your lease payment is within your budget, you can have the lender run a current credit check for final approval. If you have had liens, defaults, or any credit problems, then have them corrected and be ready to show proof of that correction.
BEST TIP: Write your own summary of your funding request; include the why, what, where, when, and who of the update or project – you know what you’re trying to accomplish, so you’re in the best position to write an accurate review. Tell your story and also include any explanation of the negative aspects so that you don’t verbally repeat the same story. With a well-written summary, a copy of your credit report, and a well-organized financing package, you’ll be ready to submit your financing application and get a quick and often positive response.
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